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iPhone

Throttling FAQs

Frequently asked questions about our claim against Apple and how you can take part.

iPhone Compensation Claim Against Apple Inc. And Related Companies.

If your questions are not answered below, please contact us by emailing us at enquiries@theiphoneclaim.com

General Information

Why has this website been created?

This website has been created in order to inform members of the public about the prospective collective claim against Apple Inc. and its subsidiaries in relation to automatic iOS updates which caused certain iPhones to slow down as well as performance issues.

The website will also form one of the ways in which Mr Justin Gutmann will update and communicate with the proposed class members of the claim.

What is the claim against Apple about?

The claim is against Apple Inc., Apple Distribution International Limited and Apple Retail UK Limited (together “Apple”) for breaching UK competition law by abusing their position of dominance in related markets by applying exploitative and unfair commercial practices that caused widespread harm to UK consumers and businesses.

These practices include: pushing iOS updates on users which contained a ‘throttling’ function, which resulted in significant reductions in the performance of these iPhones; and failing to communicate in a transparent manner about the unexpected shutdowns and subsequent ‘throttling’.

Who is the claim against?

The proposed collective claim is against Apple Inc., Apple Distribution International Ltd and Apple Retail UK Limited, (together “Apple”).

Apple Inc. is responsible for the development and licensing of all of Apple’s products including iOS software updates. Apple Distribution International Limited is responsible for importing all Apple products into the UK and is responsible for the maintenance of Apple’s online store and contact centre.  Apple Retail UK Limited operates Apple stores in the UK.

What does the claim say that Apple has done wrong / How have they broken the law?

Apple has breached competition law by abusing its dominant position in the relevant iPhone and iOS markets by selling iPhones with defective batteries that were unable to deliver peak power and pushing automatic iOS updates to iPhones which incorporated a power management tool which slowed down the iPhones and caused performance issues. Apple’s conduct was exploitative since Apple was not behaving in a fair and transparent manner that enhanced consumer benefits and welfare.  Instead, it sought to preserve its own reputation, brand loyalty and profitability, and hence its market position at the expense of its customers who were denied benefits in terms of price, quality, innovation or value for money.

 

What iPhones are included in the claim?

The following models of iPhones are included in the claim:

  • iPhone 6;
  • iPhone 6 Plus;
  • iPhone 6S;
  • iPhone 6S Plus;
  • iPhone SE;
  • iPhone 7; and
  • iPhone 7 Plus.

Why bring this claim against Apple?

As a company in a dominant position, Apple has a responsibility to ensure its conduct does not subject its consumers to unfair trading conditions. This includes a responsibility not to engage in conduct which harms consumer welfare. Smartphones have become a significant part of people’s everyday lives, and it is imperative that consumers are treated fairly.

Who is going to court and am I represented?

Mr Justin Gutmann is the proposed class representative. A class representative is a person who acts on behalf of all members of the class. He is responsible for making sure their interests are put first throughout the conduct of the claim. Mr Gutmann has been approved as the Class Representative in another competition claim.

Mr Gutmann has spent a large proportion of his professional life dedicated to public policy, market research and, specifically, to consumer welfare. His final post prior to retirement was as a Head of Research and Insight at Consumer Focus, the UK’s statutory consumer champion, and later Citizens Advice, during which time he gained experience in the mobile technology sector where his work focussed on market dominance in both the handsets market and network provider’s market.

What are the Proposed Class Representative’s responsibilities?

Mr Gutmann’s main responsibilities will be to act in the best interest of the class and to act fairly and adequately, in order to obtain the best possible outcome for the Class Members.

Once approved by the Competition Appeal Tribunal, Mr Gutmann will conduct the claim against Apple Inc. on behalf of all class members, except for those who opt-out.

During the proceedings, Mr Gutmann will be responsible for communicating with the class and for issuing formal notices. Communication will occur via updates and announcements on this website, email correspondences, and written notices. Mr Gutmann is also supported by a Consultative Group, which is made up of industry experts, which he may consult if he wishes.

Who are the solicitors instructed by the Proposed Class Representative?

Mr Gutmann has instructed the law firm Charles Lyndon to represent him in the claim. Charles Lyndon is one of the UK’s leading consumer-focused litigation firms and has extensive expertise in competition law.

Charles Lyndon has previously brought the first stand-alone class actions in the UK and has vast experience of the UK collective action regime. Charles Lyndon also has a number of group actions in the High Court relating to the emissions scandal. To see their website, click here.

About Collective Claims

What is a collective claim?

A collective claim (or collective proceedings) is brought by a class representative on behalf of a group of claimants (known as a ‘class’ or individually a ‘class member’) who have suffered loss following a breach of competition law.

What is the Competition Appeal Tribunal (CAT)?

The Competition Appeal Tribunal is a specialist court based in London that covers the whole of the UK and hears disputes such as this claim.

The Tribunal publishes its Rules and Guidance, together with information about what it does, on its website.

What does ‘opt-out’ mean in these proceedings?

In ‘opt-out’ class proceedings such as this, the claims are brought on behalf of a defined group of persons, but those persons do not have to be personally identified, nor do they have to opt-in to the proceedings.

Those persons within the class who are domiciled in the UK are automatically included in the ‘opt-out’ class proceedings unless they follow specific steps to opt-out. This proposed collective claim is brought on an opt-out basis for individuals domiciled in the UK.

If you owned any of the following device – iPhone 6,  iPhone 6 Plus, iPhone 6s, iPhone 6s Plus, iPhone SE, iPhone 7 or iPhone 7 Plus – at any point from 12 December 2016, fall within the definition of the class and are domiciled within the UK, you will be automatically included in the proposed claim against Apple, unless you choose to opt-out of the proceedings.

 

What is the timeline for the litigation?

The application for the Collective Proceedings Order has been heard by the Competition Appeal Tribunal, where they heard argument as to whether the claim should be ‘certified’ i.e., whether a Collective Proceedings Order should be granted so that the claim can proceed to the next stage. The application hearing was successful, so the proposed collective claim will now proceed to the next stage once updated funding arrangements are in place. At trial, the Competition Appeal Tribunal will decide whether to make an aggregate award of damages.

Could settlement in the proposed collective claim take place?

It is possible that settlement could take place before trial, however any settlement reached between Mr Gutmann and Apple. will need to be approved by the Competition Appeal Tribunal and it must be just, reasonable, and be in the best interest of the members of the class. If the proposed collective claim is settled for a sum of money from Apple, then that sum of money will be distributed between the class members.

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Being a Class Member

Who falls into the class for the proposed collective claim and do I qualify?

It is estimated that around 23.8 million people in the UK may be eligible for compensation. If you meet the criteria of the proposed class for the proposed collective claim and are domiciled in the UK, you will automatically be included in the collective claim if the Competition Appeal Tribunal grants a Collective Proceedings Order (unless you opt-out of it).

You are likely to fall into the proposed class if, since 12 December 2016, you acquired one or more of the models of iPhones listed here in the UK for personal use, entered into the standard iOS software licence terms and/or had an Apple ID registered to the acquired iPhone model(s), and used the iPhone(s) with any Apple iOS update from iOS 10.2 onwards.

You are also likely to fall into the proposed class if you are a business entity who one or more of the models of iPhones listed here the UK for use by yourself of your employees in the course of business and you or your employee entered into the standard iOS software licence terms and/or had an Apple ID registered to the acquired iPhone model(s), and used the iPhone(s) with any Apple iOS update from iOS 10.2 to onwards.

 

I qualify as a class member. What do I need to do?

At this stage, you do not need to do anything.

When there are any developments in the proposed claim, these will be posted on this website so that you can stay up to date. Additionally, if you click the “Keep Updated” button to stay updated and register your interest, you will be informed of these developments directly.

In the event that compensation has been secured for the class, you will then be required to come forward to claim your share of the damages. Details on how to do this will become available at the appropriate time.

Is anyone excluded from the proposed class?

The following categories of persons are excluded from the proposed class:

  • Members and staff of the Tribunal assigned to these Proceedings;
  • Officers, directors or employees of:
  • The Defendants; and
  • Any entities which have a (direct of indirect) interest in any of the Defendants that gives rise to significant control; an
  • Any entities in which any of the Defendants have such an interest; and
  • The Class Representative’s and Defendants’ legal representatives as well as any experts or other professional advisors instructed in these proceedings, including the professional staff assisting them.

For non-domiciled class members (i.e. people who did not live in the UK on the domicile date (TBC)) it is still possible to be part of the proposed class in this proposed claim. You just need to ‘opt-in’ to the claim in writing. Information on how to do so will be made available on this website at a later date. Please click the “Keep Updated” button to stay up to date and register your interest.

How It Will Affect You As A Class Member

Who is paying for the claim against Apple Inc?

Mr Gutmann is working with a specialist litigation funder, Balance Legal Capital LLP, to bring the claim.

How much money will I get and when?

Mr Gutmann is seeking an aggregate award of damages in the region of £853 million before interest is applied for the proposed class as a whole. This preliminary estimate will be refined further based on data to be disclosed by the Defendant. Any aggregate award of damages will need to be distributed to eligible class members that come forward to claim their share.

 

Will I incur any costs for taking part?

As a proposed class member, you will not incur any costs for taking part in the proposed collective claim, nor will you be liable to Apple for its costs should the proposed collective claim be unsuccessful.

Can I talk to my friends and family about the case or post on social media publicly?

Yes. There is no reason stopping you from discussing the case in person or on social media.

Can I make an individual claim against Apple as well as being part of the proposed collective claim?

If the proposed collective claim is successful, class members who remain part of the class (i.e. who do not opt-out) will release Apple from any other liability and will not be able to bring any other claims against Apple on the same basis in alternative legal actions.

More Information

How can I stay updated on the progress of the proposed collective claim?

If you would like to receive updates on the progress of the claim, please click the ‘Keep Updated’ button to register your interest and to stay up to date.

You can also revisit this website to check for new information from time to time as it will be updated periodically.

Can I object to the collective proceedings?

Any person with an interest (including anyone who would be a member of the proposed class) may object to the Collective Proceedings Order Application or the authorisation of the proposed class representative.

If you wish to file an objection, you must write to the Tribunal stating your reasons for objecting and send it by post, or fax to the following address:

The Registrar

Competition Appeal Tribunal

Salisbury Square House

8 Salisbury Square

London

EC4Y 8AP

 

Telephone: 020 7979 7978

When writing to the Tribunal you must include the reference “[Reference Name]”  and case number TBD.

Any person with an interest (including any proposed class member) objecting to the Collective Proceedings Order Application or the authorisation of the proposed class representative may also apply to the Tribunal for permission to make oral submissions at the hearing on Day Month Year. Any such application must be made in writing and received by the Tribunal by the date in the Notice of collective proceedings.

Any third party with a legitimate interest (who is not a member of the proposed class) can also apply to the Tribunal for permission to make written and/or oral submissions at the hearing on Day Month Year. Any such application must be made in writing, supported by reasons, to be received by the Tribunal by the date in the Notice of collective proceedings.

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